Toshiba quits Chinese mobile market

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Toshiba Corporation said today it had withdrawn from the mobile
phone business in China.

"We have already sold our 33 percent stake in the joint venture
mobile phone business in China early this year," a Toshiba
spokesman said.

He did not provide financial terms of the sale.

The Nihon Keizai Shimbun daily said, without citing
sources, that Toshiba had sold its stake in the joint venture - set
up in 2000 to produce mobile phones in China - to Nanjing Postel
Telecommunications for an undisclosed sum.

Toshiba had targeted the market for high-end products and had
released some models, including a video email phone for 6000 yuan,
or about ¥78,000 ($US722), the spokesman said.

"But the pace of expansion in the market for high-end products
was below our expectations," he said. "We eventually decided to
focus our resources on the European market where we can expect
(higher) growth potential."

Chinese producers command a 50 percent share of the local market
and are introducing units priced at 500 to 600 yuan, or about
¥6500 to ¥7800.

Toshiba had tried to avoid a battle for a share of the low end
of the market but failed to reach sales targets due to weak brand
recognition, the business daily said.